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Nielsen adds Facebook, YouTube, and Hulu to digital ratings (FB, GOOGL, GOOG)
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Nielsen will begin to count video views on Facebook, Hulu, and YouTube into its Digital Content Ratings, according to a press release. Enabled publisher clients will get credit for Facebook and YouTube distributed video, while Hulu will provide certain partners with credit for series content on its platform.
Nielsen’s digital content ratings were launched in the fall of 2016, with the intention of gauging audiences across desktop and mobile devices, but the update will give publishers more granular detail on how videos perform, according to Nielsen SVP of product leadership Jessica Hogue, per Variety.
Nielsen’s update comes as traditional pay TV experienced its worst Q1 in terms of subscriber losses ever, according to Craig Moffet. Cord cutting has undoubtedly contributed to the premium-ification of the online ecosystem, and Nielsen’s inclusion of digital platforms in its digital ratings is long overdue.
Here’s why including Facebook, Hulu, and YouTube into Nielsen’s digital ratings makes sense:
More publishers are beginning to focus on video. In June, Vocativ laid off its entire editorial staff and Fox Sports cut 20 writers to focus on video production. And Mashablereorganized its staff in 2016 to focus on original video. This shift comes as consumers are increasingly turning to digital platforms to view content, but is also likely a result of the higher CPMs and shareability associated with video production.
And getting a better understanding of video performance can help publishers inform content strategy and price discussions. For example, the new tool gives Buzzfeed a clearer picture of its true reach, as much of its content was being missed by traditional measurement tools, according to Edwin Wong, Buzzfeed's vice president for research and insights. This means publishers can now better understand which content users are responding to the most on platforms, and create more types of videos similar to successful ones. Publishers also may find it easier to negotiate with brands — Mic president Jonathan Carson stated the company is now better positioned to articulate the strength of his audience to brand partners.
It's a reliable verification alternative to platforms "grading their own homework." Advertisers may be more confident that metrics provided by platforms are accurate if they're backed up by Nielsen's ratings. This is important as platforms have been known to put out inflated figures — Facebook was found in September 2016 to have overstated the average viewing time for video ads on its platform for two years.
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